This course covers both commercial and mixed-use property developments. It advances from initial 'back of an envelope' calculations to sophisticated cash flow and viability studies with sensitivity analysis, taking full account of current market conditions. It includes an interactive workshop session for which participants are advised to bring a calculator.

Course Content

Residual valuations and development appraisal

Appraisal methodology

Cash flow techniques

Measures of profitability - profit erosion calculations

Ground rent and premium derivation

Refinement - sensitivity and marginal viability analysis

Timing, phasing and interim receipts - including grants and other sources of non commercial funding

Useful computer software and the creative use of spreadsheets

Avoiding negligence - making the right notes and assumptions

The day will be of great benefit to developers, project managers, lenders, advisers, agents, consultants, lawyers, landowners and public sector bodies concerned with or contemplating the development of land or buildings.

Learning Objectives

By the end of the course you will be able to:

Understand the difference between appraisals and residual valuations

Appreciate the importance of undertaking sensitivity analysis

Be competent enough to understand the various measures of profitability and viability

Be aware that small changes to certain inputs can make a large difference to the outputs

Have guidance on how to interpret development appraisals and viability studies

Use tips to assist you in creating your own appraisal from first principles